1/My latest @bopinion post is about Biden's call for an immigrant amnesty -- a path to citizenship for the country's 11+ million undocumented immigrants.
2/Illegal immigration halted and went into reverse sometime in 2007.
But would Biden's amnesty restore the pre-2007 situation?
Possible, but highly unlikely.
3/First of all, many people believe that Reagan's 1986 amnesty -- the biggest in American history -- was responsible for the huge wave of illegal immigration.
4/Also, how many people would upend their lives and go live a fugitive underground life in a strange land in the hope of another amnesty 35 YEARS LATER? It makes no sense!!
5/But more fundamentally, a lot has changed between 1986 and 2021.
For one thing, Mexicans just don't have many kids anymore.
6/Families need some minimum number of kids to stay home and take care of the aging parents. With a fertility rate of 2 instead of 4, there just aren't extra kids to send north to work and send remittances.
7/Not only that, but Mexico's GDP per capita (in PPP terms) is about $20,000.
That's well past the level when emigration pressure tends to drop off.
9/"BUT WHAT ABOUT THE CARAVAAAAAAAANS!!!", people shriek.
Folks, the caravans are tiny compared to what we used to get. They haven't come close to balancing out the reduction in the undocumented population since 2007.
10/Plus, Central American fertility is falling too.
11/Also, Biden's not going to implement open borders, so breathe into a paper bag for a minute and calm down. 😆
2/We're all familiar with the trend of tech companies and other knowledge industries (finance, biotech, etc.) piling into a few tech hubs, raising rents and house prices.
Now some think the advent of Zoom, Slack, etc. might reverse this trend.
I respect disagree with this thread. The idea that hyperinflation results from a regime change is an unproven hypothesis. It's something we should be studying, yes, but for now it's just a guess.
In particular, if we stop worrying about austerity like we used to, and then at some point we DO experience hyperinflation, the Tom Sargents of the future will look back and call our attitude shift a "regime change". And who will be able to disprove them?
2/Some people say that we're already heading into the danger zone with respect to debt.
My instinct is that these people are completely wrong, and we're not in danger. But I can't *prove* them wrong, because we don't actually know how much is too much.